Poland and Polish Discussion Group and Forum

Welcome to the original English language Poland and Polish discussion group board. This message forum is a place where English-speaking Poles, foreigners (expats) living in Poland, and anyone with a genuine interest in Poland can discuss and read the views of others concerning Poland. Subjects include: Polish news and current affairs; Life in Poland; politics; genealogy research; Polish culture and history; advice and tips on visiting Poland; Polish property and investment issues. The aim of our group is to increase awareness of wonderful Poland using the English language and allow and foster the honest debate and exchange of opinions on anything vaguely related to Poland and Polish - positive, negative and/or neutral! To state the obvious: all opinions and views expressed on this site are solely those of their respective authors and are not necessarily those of anyone else! Messages consisting of ads will be deleted.

Once again the myth of wage caused inflation raises its head. Wage inflation predicts unemployment not broad based inflation. Wage inflation is a lagging indicator. True inflation can be initiated by several causes: devaluation, excess growth of money supply, and growth of marginal tax rates amongst others.

It’s amazing what passes for an “economist” nowadays.

For the truly boring on this forum:
http://65.89.19.70/research/PolicyDis/pd1.PDF

Conclusion
There is little systematic evidence that wages (either conventionally measured by compensation or adjusted through productivity and converted to unit labor costs) are helpful for predicting inflation. In fact, there is more evidence that inflation helps predict wages. The current emphasis on using changes in wage rates to forecast short-term inflation pressure would therefore appear to be unwarranted. The policy conclusion to be drawn is that inflation can appear regardless of recent wage trends.